'Marketing Research Energy Drink Market Brazil Essay\r'

'The using up of this research was to evaluate potential opportunities of distri excepting untried nil make whoopie V- confederation+vim® in brazil-nut tree. Having performed vicarious mart research, we were sufficient to analyze economic, political, legal, cultural, and sociable factors that pertain brazil-nut tree’s worry environment. We as salutary as explored rate of f let loose foodstuff maculation opportunities in brazil-nut tree and performed detailed abstract of vitality imbibition perseverance in brazil nut and competition.\r\nDuring the research we gathitherd secondary data make by US and brazil nutian government successionncies, US Commercial get ahead, merchandise research agencies, as swell up as information from caper youthfuls and tete-a-tete companies’ web commits (such as Coca-Cola, Red Bull, etcetera. Based on ga in that respectd information, we concluded that although in that location is a list of ch eachenges in t he brazil-nut treeian grocery store that shit coordination compound duty environment and obstacles for US exporters, get-up-and-go sop up fabrication in brazil-nut tree is in outset stage and frankincense allow fors a good offshoot potential.\r\nAfter selecting and defining the level securities industry, we were able to bring on proposals for international promotional strategy, to describe business and marketing challenges and to leave alone detailed solution alternatives. INTRODUCTION V-Fusion+ slide fastener® is a new-fangled push beverage do with harvest and vegetable juice and green tea extract. It is a strong alternative to proud- caffein and high-sugar energy drinks because it contains booster cable combined serving of vegetables and fruit, is an excellent source of B vitamins, has only 50 calories and no added sugar or artificial colors, flavors or preservatives.\r\nThe output incumbently distri besidesed in United States (Wal-Mart and diff erent grocery and retail stores). The purpose of this research is to explore opportunities of distributing V-Fusion+ cleverness® in brazil. We selected brazil-nut tree as a potential market because it is Latin America’s biggest deliverance accounting for 60% of its gross municipal harvest-feast and s level(p)th largest economy in the solid ground with population of about two hundred angiotensin-converting enzyme one thousand thousand gazillion million, unattackable municipal demand for Ameri gagenister goods and emergence affection association.\r\nWith gross domestic w be growth of nearly $2. 5 trillion in 2011 harmonize to The snow-white House (2012), we believe this market offers excellent growth opportunities for US companies. Its middle frame and consumption has grown tremendously in whence(prenominal) decade †as per Searchlight Process (2012) 40 million deal has joined middle class amongst 2003 and 2011 and 20 million atomic number 18 exp ected to be included by 2014.\r\nIn addition, there is a soak up predilection for Ameri washstand-produced goods to domestic goods in brazil-nut tree †they demand makes for all yields from high tech and groom point of intersectionions of Apple and Nike to beverages of Coca Cola. The improvement in floor is expected in the next 2 age as brazil-nut tree prep ars for the dry dry land Cup in 2014 and the Olympics in 2016 †it im procedure spend trillions in ground lap development of its roads, railroads, ports, and airports.\r\n agree to US Commercial Service (2011), despite signs of improvement there be a number of challenges in the brazilian market create complex business environment and create obstacles for US exporters, such as uneven income scattering, problems in vulgar education, dispro persona of market concentration, and â€Å"grey economy” that hinders tax arrangement and keeps economic growth from r severallying its full potential.\r\nIn a ddition, doing business in brazil-nut tree requires understanding of topical anaesthetic anaesthetic business practices such as implicit be of doing business referred to as â€Å"Custo Brasil” †make up cogitate to distribution, government procedures, employee benefits, and complex tax coordinate. Complex usage arrangement along with high tariff barriers that increment consumer worths up to 100%, and overloaded legal constitution with lengthy processes is another challenge US companies atomic number 18 facing. As per US Commercial Service (2011), The World Bank ranks brazil 127 out of 183 economies in the introduction in terms of ease of doing business.\r\nNeverthe little, if these challenges atomic number 18 accounted and approached with neat solutions, we believe entrance in brazil-nut tree market whitethorn be super salaryable and skillful for US companies in general and Campbell with its innovative mathematical product V-Fusion+ null® in p articular. CURRENT ECONOMIC, POLITICAL, CULTURAL, SOCIAL AND lawfulnessful ENVIRONMENT IN BRAZIL Economic Environment. brazil nut is Latin America’s near authoritative outlandish and one of the rising economic powers unitedly with Russia, China and India (also known as BRIC nations). Almost epitome size the European coalescence (8.\r\n5 million squ atomic number 18 kilometers), with rich in reserves of vivid resources (iron ore, manganese, bauxite, nickel, uranium, gemstones, oil, wood, and aluminum, and 14% of the world’s renewable juvenile water), and with over 300 million hectares of agricultural land in favorable climate conditions, brazil-nut tree takes a relevant invest in world(a) market. consort to Bureau of Western hemisphere individualal matters (2011), brazil-nut tree’s consistent growth from 2002 to 2009 when its real GDP around doubled (from US$ 724 billion to US$ 1. 5 trillion), and economy’s solid slaying during 2008 fina ncial crisis followed by strong reco genuinely (including 2010 growth of 7.\r\n5%) contributed to countries transition from a regional to global power. Although GDP growth in Brazil slowed consume (2. 7 % in 2011 vs. 7. 5% in 2010) and concord to the Colitt (2012) its industrial output has contracted 3. 4 % from give out category, the economy is the world’s seventh-largest and is expected to rebellion to fifth within the next several years. As noted by Bureau of Western Hemisphere face-to-face matters (2011), during the administration of former President Lula, surge exports, economic growth, and social programs encourageed lift tens of millions of Brazilians out of poverty.\r\nFor the low time, a majority of Brazilians are now middle-class, and domestic consumption has become an authorized driver of Brazilian growth. President Dilma Rousseff, who took office in January 2011, has indicated her intention to keep up the former president’s economic policies, in cluding cash in ones chips fiscal management, inflation control, and a floating re-sentencing rate. Colitt (2012) soils that Brazilian President Dilma Rousseff is implementing policies aimed to protect Brazilian labor †increasing duties on imported goods care shoes, textiles, and electronics, but not putting enough effort into pickle topical anesthetic infrastructure.\r\nThe financial sector is secure and delivers local firms with a wide range of financial products, to that degree interest rates re main among the highest in the world. callable to high interest rates investors that substantiate been purchase Brazilian high-yielding bonds work driven up the sincere reservation it a very strong. This in turn, has do imports to a greater extent favorable for US companies and exports more pricy for Brazil, which increased Brazil’s raft dearth to $92. 5 billion in 2011. As per The White House (2012), U. S. goods exports to Brazil stand more than tripled since 2002, growing from $12. 4 billion in 2002 to $42.\r\n9 billion in 2011 (largest categories are machinery, aircraft, and plastics). As noted by Bureau of Western Hemisphere Affairs (2011), Brazil has one of the most advanced industrial sectors in Latin America. Accounting for roughly one-third of the GDP, Brazil’s diverse industries include automobiles and parts, machinery and equipment, textiles, shoes, cement, computers, aircraft, and consumer durables. Brazil continues to be a major world supplier of commodities and vivid resources, with significant operations in lumber, iron ore, tin, other minerals, and petrochemicals.\r\nHowever, high inflation (7. 3% in October 2011 †in a higher place the top(prenominal) limit of the government’s design of 2. 5%-6. 5%) is a cause of extremely high cost of operating the manufacturing (due to high prices of energy, afflictive materials and wages), which makes it very hard for Brazilian industries to be private-ente rprise(a) in the world markets. According to Alberto Ramos, chief Latin America economist at GS, manufacturing indus sample is not a competitive advantage of Brazil and it should direct its resources into fields where it is competitive, like function, agribusiness and commodities.\r\nBrazil has a diverse and sophisticated services indus resolve, including developed telecommunications, banking, energy, commerce, and computer science sectors. And most classically, Brazil is generally open to and encourages distant coronation -it is the largest recipient of contrasted direct investment (FDI) in Latin America, and the United States is traditionally the realize foreign investor in Brazil †United States is a major supplier with over 15% of Brazil’s imports. Political Environment.\r\nThe current structure of the Brazilian government is a Federative republic with 26 states and feral district, governed by a presidential formation in which the president is both precede of state and head of government ( elections are based on a quadruplet-year term). Brazil has become autarkical in family line 7, 1822 and promulgated its constitution in October 5, 1988. The 1988 constitution grants giving powers to the federal government, made up of executive, legislative, and juridical branches.\r\nAs resumed by Bureau of Western Hemisphere Affairs (2011), there are 81 senators, three for each state and the federal official District, and 513 deputies. Senate terms are 8 years, staggered so that twain-thirds of the upper house is up for election at one time and one-third 4 years later. Chamber terms are 4 years, with elections based on a complex system of residuumal re endowation by states. Each state is eligible for a minimum of eight seating; the largest state delegation (Sao Paulo’s) is capped at 70 seats.\r\nThis system is weighted in favor of geographically large but sparsely populated states. In Congress, fifteen political parties are represen ted making it common for politicians to switch parties. The largest political parties are the Workers’ ships corporation (PT), Democrats (DEM), Brazilian Democratic Movement caller (PMDB-center), Brazilian Social Democratic party (PSDB), Progressive Party (PP), Brazilian Labor Party (PTB), Liberal Party (PL), Brazilian left Party (PSB), Popular Socialist Party (PPS), Democratic Labor Party (PDT), and the communist Party of Brazil (PCdoB).\r\nMajor labor colligation federations include the Workers’ Unitary Central, the Workers’ General Confederation (CGT), and the Forca Sindical (FS). As listed in World Guide (1997), there is a material body of labor unions and national, religious and master associations that stack in Brazil belong to: Brazil is one of the founding members of the United Nations, the G20, CPLP, Latin Union, the Organization of Ibero-American States, and Union of South American Nations. One of its main goals is to provide aid to developi ng countries and is estimated to be $1 billion per year.\r\nAs per Bureau of Western Hemisphere Affairs (2011), to further increase its international profile (both politically and economically), the Rousseff administration is also seeking expanded trade ties with developing countries, as well as a strengthening of the Mercosul (Mercosur in Spanish) customs union with Uruguay, Paraguay, and Argentina. Brazil is a charter member of the United Nations and participates in its specialized agencies. Cultural and Social Environments.\r\nThe official wording of Brazil is Portuguese and it is most widely use language. However you may find less common languages like Spanish, German, Italian, and Japanese. But legion(predicate) a(prenominal) Brazilian executives call English, since many another(prenominal) another(prenominal) of them take up studied abroad in the United States or Europe. Understanding Brazilian culture, social environment and business etiquette is congenital for succe ssfully doing business in Brazil. Anybody who is doing business with Brazilians should be aware of the conf employ cultural and structural barriers which might con preliminary them.\r\nAccording to study made by University of Illinois (2010), concepts of class and post are very strong in Brazil and can determine the position a somebody may take in the alliance, which implies that Brazilians allow contrariety in their companies. Although communication amid high and low level employees is often informal, everyone is aware of social hierarchies. When conducting business it is important to remember that the Brazilian family (often family members working for the akin company) is the foundation of their social structure and it forms the basic enduringness for most Brazilian citizenry.\r\nBecause of this, Brazilians need to know whom they are doing business with before they can effectively work together, so questions about person’s personal life, family, and company should b e expected. Relationships are extremely important to Brazilians, by construct close personnel relationships and building trust, foreign businessmen and investors bequeath convey a greater chance of success in doing business in Brazil. According to the information gathered and provided by Kwitessential (2010), although the communication is very informal, some impartial rules of etiquette mustiness be followed.\r\nAlthough business appointments can be schedule on the short notice, it is best to schedule them two to three weeks in advance and confirm them in constitution since it is not uncommon for appointments to be off or changed at the last minute. It is important to come forth on time for meeting in Sao Paulo, however, in Rio de Janeiro and other cities it is acceptable to arrive a a couple of(prenominal) minutes late for a meeting. During introduction it is very important to be prepared for a parcel of handshakes when saying hi and bye or a kiss in the cheeks amongst m en and women.\r\nIt is important to note that since business in Brazil is hierarchical, so decisions are made by highest ranking person which may not be al counsels present †senior managers usually attend only sign meetings (and expect to meet someone higher graded as well). According to study in Ethisphere (2008), large number in US and Brazil differ in ethical orientation and therefore, before entering Brazil we should be aware of ethically challenging situations and base strategies on how to deal with potential corruption in front of time.\r\nIt is important to understand Brazillian â€Å"Jeitinhio Brasileiro” way of thinking †their disposition to look for alternatives to do something that in our eyes seems improper, which seldom require bribes and is not considered corruption, but more like an alternative way of accomplishing objectives when confronting overly rigid rules. juristic Environment. Brazil is organized as a Federal Republic and its legal syste m is based on Roman civil code, which implies that all laws that discipline all kinds of situations are previously scripted and made public.\r\n to a fault the Federal Constitutions, which consists of 250 articles that outline citizens’ organic rights and guarantees, the political and administrative organization of the Federal Republic of Brazil, the individual spheres of federal agency of the Executive, Legislative and Judicial branches, tax system and the storeamental labor rights, there main legal documents are the cyphers: accomplished Code, the Tax Code, the Penal Code and the Civil Procedure Code.\r\nThe Civil Code comprises over 2000 articles regulation matters such as Obligations and Contracts, Businesses and Corporations, Real Estate and think property rights, and many others. The Tax Code narrows the main Brazilian tax regulations, which are complemented by many Federal, State and Municipal laws. The Penal Code brings the definitions of conducts considered c rimes and the punishments for anyone allowance the respective legal descriptions.\r\nFinally, the Civil Procedure Code regulates the due process of law. There is a variety of legal restrictions for foreign companies conducting business in Brazil, which pushed many companies towards partnerships with qualified agents or distributors when entering the Brazilian. First, a foreign company must obtain written authorization to put away a branch in Brazil, thus joint ventures are usually more common than independent entities. To avoid potential legal problems, US Commercial Service (2011) recommends U.\r\nS. companies countenance a written agreement to help exporters limit liability for product defects, protect a trademark, better ensure payments, and define warranty terms, and consult with a Brazilian law firm before signing any agreement. Taxes in Brazil are actually favorable compared to the U. S. The current corporate income tax rate is 15% no matter of the corporation’s b usiness but with a 10% supplementary tax on the portion of net profits that exceeds R$ 20. 000,00 per month.\r\nThe main logical argument exchange in Brazil is the Sao Paulo Stock switch over (â€Å"Bovespa”). â€Å"Securities, such as shares, commercial papers, debentures, investment fund quotas and derivatives, are traded on Bovespa. ” Also, it is important to note that, according to a business survey conducted by PriceWaterhouse Coopers (2009), 70 per centum of firms in Brazil report having played out at to the lowest degree 3 percent of revenues on bribes. Most of these bribes are to expedite procedures, special intervention or access to traditional transactions.\r\nAlthough nowadays many companies in Brazil, especially those that operate internationally, are chip against corruption (for ex: companies signing Brazilian compact for Integrity and against Corruption), and Federal agents have been effective in policing illegal manner (which helped Brazil achiev e â€Å" curtail” rating in 2009 Global Integrity Report), corruption, political inefficiency, legal and bureaucratic complications remain real and very sensitive issues in Brazil that cause a great frustration to the international business hoi polloi. industry AND COMPETITORS OVERVIEW.\r\n zip Drink industry in Brazil is in inception stage and thus offers a good growth potential for a company distributing new energy drink products like V-Fusion+ life force®. According to Russell (2012), energy drinks was the fastest growing squeezable drinks category in Brazil in 2010, with 33 percent growth in value term. Moreover, Brazil is still a small market for energy drinks with off-trade hoi polloi gross gross sales of 31 million liters in 2010, which corresponds to 1% of global volume. As Russell (2012) points out, new product launches with new positionings and lower price points, and increased availability, hateful that the market is tipped for growth.\r\nAlthough some h ealth concerns have been voiced regarding energy drink consumption, particularly when associated with alcohol, there is no indication that the category is acquiring a negative image in Brazil, Russell (2012) explains. There new skips in Brazil’s population proportion and its consumption patterns also create opportunity in energy drink industry: middle class and consumption has grown tremendously in onetime(prenominal) decade †as per Searchlight Process (2012) 40 million battalion has joined middle class between 2003 and 2011 and 20 million are expected to be included by 2014.\r\nAs of today, out of 200 million Brazilians over 52 percent are a part of middle class, whose combined periodic family income ranges between US$600 (R$1,000) and US$2,400 (R$4,000). Moreover, according to secretariate of Strategic Affairs of the Presidency of Brazil (SAE) middle class is predominantly comprised of preadolescent people less than 30 years old, with formal employment and fluid income, mostly residing in urban areas and expressing strong preference for American brands.\r\nWith this in mind, according to Russel (2012), Euromonitor predicts that multinational manufacturers ordaining start to invest more in the outlandish to offset sluggishness in other markets. Brazil could be one of the top five markets global for energy drinks, according to Euromonitor. Sales of energy drinks are predicted to grow in total volume at 14% per year on average between 2010 and 2015. The biggest challenge in energy drink industry for US exporter is the price structure due to complex customs system along with high tariff barriers that increase consumer prices up to 100%.\r\nAs per US Commercial Service (2011), in some cases be are so high that a simple calculation may indicate that US exporter’s margin lead not allow them to argue with local products. Thus, some US companies work on low margins and implement streamlined supply fibril systems aimed to lower oper ation costs. Red Bull, for example, whose drink already holds lead position in Brazil’s energy drink market with 59. 6 percent volume share, is building a production appoint in Brazil to remove high tariffs from its price structure and be able to increase its profit margins while lowering retail prices and increasing sales volumes.\r\n overly Red Bull, who dominates Brazil’s energy drink market with 59. 6 percent volume share, the main competitors are US based multinational giant The Coca-Cola Co. with its product â€Å"Burn strength” pickings 11. 7% share and German Lizur Trading’s â€Å"Flash Power energy” taking 4. 8% share, and new Gladiator with no sales figures available but with promising results. According to Euromonitor planetary (2010), the newer brand Gladiator is one of the fastest growing tardily drinks brands. As the company has massive distribution infrastructure, it can become the toughest rival in the industry in the medium te rm.\r\nMarketing activity and optimization of logistics and distribution channels are likely to be explored by the main players in energy drink industry over the next few years. Austrian company Red Bull has created the global market for energy drinks, and the pioneering Red Bull brand became synonymous with energy drinks for a large number of consumers, including Brazilians. According to Euromonitor international (2010), despite rising competition, Red Bull GmbH continues to intimately lead the global energy drinks market by both volume and value.\r\nRed Bull is produced at a single facility in Austria and then distributed around the world via a network of local subsidiaries and external importers and distributors. Thus, Red Bull imports its product to Brazil through a distributor and adds high costs of duties, energy and logistics cost to its prices, which makes it unaffordable for some low-income consumers in Brazil. Also, Euromonitor International (2010) advises that the compa ny aims to capitalize on the current consumer trend towards â€Å"natural” ingredients, and posteriors an older consumer assort that is typically more interested in product ingredients than younger consumers.\r\nThus, it is clear that industry leader sees opportunity in expanding its product portfolio to target health conscious consumers, which means that V-Fusion+Energy® has a great opportunity in this market if introduced first. Coca Cola competes on Brazil’s energy drink market with Burn Energy †a new Swedish high-energy drink oriented on young population (20-24) with its stylish design and promotion associated with famous dj’s, parties in famous clubs in Brazil and music festivals. Besides the move inive image, added native Brazilian high caffeine guarana extract appeals to Brazilians.\r\nCoca Cola has very efficient distribution network in Brazil and 46 manufacturers strategically fixed in all regions of the country ensuring the supply of about one million points of sale. To summarize information provided on official web site of Coca-Cola in Brazil, Di peck Brazil is one of the four major operations of Coca-Cola performing in Brazil since 1942. Besides Coca-Cola, there are 16 independent business groups, called authorized manufacturers, in addition to the junior-grade Lion and Del Valle, who draw up the final product in its 46 plants and distribute them to retail outlets.\r\nThis structure allows Coca-Cola to gain efficiency in manufacturing and distribution, avoid high tariffs and bureaucratic import barriers, thus minimizing costs and consumers retail prices. SELECTION AND ANALYSIS OF TARGET MARKET As we mentioned earlier, health and energy segment of beverage market has been growing strongly in Latin American countries including Brazil. Studies have shown that the change in consumer wealth and behavior has driven the health and energy markets to be viewed as the most promising segment of the beverages industry.\r\nMore than two-thirds of Brazilians are concerned with their energy levels and try to manage tiredness. With the new V8+Energy people can look forward to enjoying a combined serving of vegetables and fruit with the add together of caffeine that is comparable to the leading energy drink or a cup of coffee. By targeting upper and middle class we will be able reach out to over 80 million of people living in Brazil. Huge loss between rich and poor is the direct flat coat why social classes have such relevancy for segmenting demography in Brazil.\r\nNovias (2011) classified contemporary Brazilian society from letters A-E, as follows: 1. Educational take aim • partes A and B: usually composed by those who established higher education. The younger generations of these classes tend to be fluent in several languages. • fork C: most people in this class have accurate high school and there is also a significant quantity of people who completed higher education or at least have a technical level degree. • phratry D: people who have not finished high school. • Class E: people who have not finished elementary school and untaught people. 2. Occupation.\r\nThe educational levels previously presented support the level of complaisance among five different classes. This employment relationship is presented as: • Class A: composed by bankers, investors, business owners, major landowners and people with extraordinary skills for the industry they operate in. • Class B: composed by directors and managers, politicians, judges, justices, prosecutors, well graduated professors, doctors, well qualified engineers and lawyers, etc. • Class C: composed by those who provide services directly to the wealthier groups, such as teachers, managers, mechanics, electricians, nurses, etc.\r\n• Class D: composed by people who provide services to Class C, such as housemaids, bartenders, bricklayers, people who work for the civil construction compa nies, small stores sellers, low-paid drivers, etc. • Class E: composed by people who earn minimum salaries, such as cleaners, pass sweepers, and also by unemployed people. Our primary target is classes A-C. Consumers in these classes are hardworking people (ages 18-35) that have proper education to know the benefits of drinking V-Fusion+Energy® and want a smart, bouncing, and effective way to gain their energy back.\r\nIn terms of the geographic locations there are some regions where there is a strong dominance of classes D and E like the North, northeastern United States and Central-West regions in which we will not focus on. However, it is the larger cities such as Sao Paulo in which social differences are mostly visible and is where many of the upper classes are found, as well as Brasilia, capital of Brazil. Our age segmentation can vary mostly because the V-Fusion+Energy® drink can be consumed by almost anyone at any age.\r\nMade with natural ingredients, it is sinewy for any age group to drink including young teens from ages 12-19 as well as for seniors. However, our primary target is working social classes A-C that belong to 18-35 age group and teenagers who are following newest trends , interest and youthful lifestyle. promotional STRATEGY Introducing Acai Berry Flavor. In order to prepare the product to the Brazilian people, we will introduce a new flavor of V8 Fusion Energy: Acai Berry. Acai is the most popular fruit in Brazil, and it is enjoyed throughout the year by both young and old.\r\nBy creating an acai flavor, we will be able to expand our market, because our product will appeal to all Brazilians. We will also attract more customers to our target market, mostly healthy individuals who consummation regularly. Acai is one of the healthiest fruits in the world: it contains powerful antioxidants that can help defend the body against life’s stressors. It also contains anthocyanin and flavonoids, which play a key billet in the body’s cell security measures system, help slow down the aging process, and may promote fat loss.\r\nAll these health benefits are the reason why acai is often referred to as a â€Å"super fruit” by nutritionists. Processing the acai fruit into an energy drink does require time and resources, but considering that Brazil is an upper-middle-income country with a newly, rapid industrializing economy (Keegan), we have determined that the acai strategy will be successful. Localizing our product by including something that everyone in Brazil is known with and enjoys will be a successful sign promotional strategy.\r\nIt will define our target market, because of acai’s health benefits. It will also expand the market, since many people will buy and drink our product, only because they enjoy the flavor of acai berry. bazaar. The Rio Carnival is the perfect place to market out V-8 Fusion Energy drink. We will be considering a couple of strategies at the Rio Carniv al: 1) we will have our sales employees offer people the drink for free, and 2) we will occupy small marketers, located around the carnival and sell our product there. dislodge sampling will initiate the promotion of our drink.\r\nWe have strong belief in the quality and judgment of our product, which is why we believe that once people try it, they will be returning customers. The second strategy will be used for customers wanting to try the other great flavors of our product: Peach Mango, and pomegranate Blueberry. This strategy will also be used as primary research. We will be most monitoring our sales, considering factors such as: location of vendor and flavor of drink. Employees will collect the data electronically, which will be used to determine which flavor is more popular in which area.\r\nWe will also have employees conduct observational surveys. They will be writing down data of approximate age of customers, as well as their facial expressions after drinking, to help d etermine if customers enjoyed our product. Soccer †Campeonato Brasileiro. The most popular play in Brazil is soccer. It is so popular, that it is not even considered a sport; it’s a way of life for most Brazilians. Soccer is played all over: on the streets, on the beach, in parks, and in professional soccer clubs. Professional soccer players in Brazil are the most famous and recognized people in the country.\r\nThis is why we plan to promote V8 Fusion Energy through professional soccer groups We will offer a contract to the professional team †Santos to place our product name on the front of their uniforms. Santos is currently the team with the best-selling jerseys and apparel in Brazil, and we would like to be associated with a popular, winning team. research has showed that when a product is associated with a successful team, sales increase as well. We will also offer personal contracts to one or two star players from the team. They will play a key part in our advertising commercials and promotional campaigns throughout the country.\r\nOur vision is to promote V-Fusion+Energy® as a healthy source of energy and gain strong position on energy drink market in the country, thus we see tremendous potential to market our product in the professional soccer league. Brazil does not have a specific drink associated with sports (such as Gatorade in the United States). We will use an aggressive market strategy and make our V8 Energy Fusion the official drink of Brazilian soccer possibly sports in general. Our product will be placed on the sidelines of all games. Players coming in and out of the game will drink our product for energy and hydration.\r\nOur goal is for people to associate our product with energy, success, and health, which is exactly what V8 Fusion Energy is †a healthy energy drink for success!\r\nBUSINESS AND trade CHALLENGES AND SOLUTIONS To achieve a successful outcome in launching the V-Fusion+Energy® product in Brazil, it is essential to highlight the barriers to entry and marketing challenges. We have determine three key areas that present a challenge; un-even income distribution, public perception and consumer education, and a foreign judicial system that includes a complex tax system and testing custom laws.\r\nFirst, un-even income distribution in society refers to the possession of the production factors and the price the owners get in the market. Focusing on this issue results beneficial considering we can’t put our product out there if the consumer population does not have a stable income in the different cities or areas, and the production cost are unknown . Therefore, in order to tighten production costs we can create a joint venture with a pre-existing Brazilian beverage companies. furthermore, we will focus on the local agriculture; I. e invest in local agriculture.\r\n'